1 | 1 | | II |
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2 | 2 | | 118THCONGRESS |
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3 | 3 | | 1 |
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4 | 4 | | STSESSION S. 2487 |
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5 | 5 | | To provide for an enhanced domestic content requirement for Navy |
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6 | 6 | | shipbuilding programs. |
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7 | 7 | | IN THE SENATE OF THE UNITED STATES |
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8 | 8 | | JULY25, 2023 |
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9 | 9 | | Ms. B |
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10 | 10 | | ALDWINintroduced the following bill; which was read twice and referred |
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11 | 11 | | to the Committee on Armed Services |
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12 | 12 | | A BILL |
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13 | 13 | | To provide for an enhanced domestic content requirement |
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14 | 14 | | for Navy shipbuilding programs. |
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15 | 15 | | Be it enacted by the Senate and House of Representa-1 |
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16 | 16 | | tives of the United States of America in Congress assembled, 2 |
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17 | 17 | | SECTION 1. ENHANCED DOMESTIC CONTENT REQUIRE-3 |
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18 | 18 | | MENT FOR NAVY SHIPBUILDING PROGRAMS. 4 |
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19 | 19 | | (a) E |
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20 | 20 | | NHANCED DOMESTICCONTENTREQUIRE-5 |
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21 | 21 | | MENT.— 6 |
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22 | 22 | | (1) C |
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23 | 23 | | ONTRACTING REQUIREMENTS .—Except as 7 |
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24 | 24 | | provided in paragraph (2), for purposes of chapter 8 |
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25 | 25 | | 83 of title 41, United States Code, manufactured ar-9 |
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26 | 26 | | ticles, materials, or supplies procured as part of a 10 |
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27 | 27 | | VerDate Sep 11 2014 00:17 Aug 10, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2487.IS S2487 |
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28 | 28 | | kjohnson on DSK79L0C42PROD with BILLS 2 |
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29 | 29 | | •S 2487 IS |
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30 | 30 | | Navy shipbuilding program are manufactured sub-1 |
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31 | 31 | | stantially all from articles, materials, or supplies 2 |
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32 | 32 | | mined, produced, or manufactured in the United 3 |
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33 | 33 | | States if the cost of such component articles, mate-4 |
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34 | 34 | | rials, or supplies— 5 |
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35 | 35 | | (A) supplied during the period beginning 6 |
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36 | 36 | | January 1, 2026, and ending December 31, 7 |
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37 | 37 | | 2027, exceeds 65 percent of the cost of the 8 |
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38 | 38 | | manufactured articles, materials, or supplies; 9 |
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39 | 39 | | (B) supplied during the period beginning 10 |
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40 | 40 | | January 1, 2028, and ending December 31, 11 |
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41 | 41 | | 2032, exceeds 75 percent of the cost of the 12 |
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42 | 42 | | manufactured articles, materials, or supplies; 13 |
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43 | 43 | | and 14 |
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44 | 44 | | (C) supplied on or after January 1, 2033, 15 |
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45 | 45 | | equals 100 percent of the cost of the manufac-16 |
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46 | 46 | | tured articles, materials, or supplies. 17 |
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47 | 47 | | (2) A |
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48 | 48 | | PPLICABILITY TO RESEARCH , DEVELOP-18 |
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49 | 49 | | MENT, TEST, AND EVALUATION ACTIVITIES .—Con-19 |
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50 | 50 | | tracts related to shipbuilding programs entered into 20 |
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51 | 51 | | under paragraph (1) to carry out research, develop-21 |
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52 | 52 | | ment, test, and evaluation activities shall require 22 |
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53 | 53 | | that these activities and the components specified 23 |
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54 | 54 | | during these activities must meet the domestic con-24 |
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55 | 55 | | tent requirements delineated under paragraph (1). 25 |
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57 | 57 | | kjohnson on DSK79L0C42PROD with BILLS 3 |
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58 | 58 | | •S 2487 IS |
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59 | 59 | | (3) EXCLUSION FOR CERTAIN MANUFACTURED 1 |
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60 | 60 | | ARTICLES.—Paragraph (1) shall not apply to manu-2 |
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61 | 61 | | factured articles that consist wholly or predomi-3 |
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62 | 62 | | nantly of iron, steel, or a combination of iron and 4 |
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63 | 63 | | steel. 5 |
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64 | 64 | | (4) W |
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65 | 65 | | AIVER.—The Secretary of Defense may 6 |
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66 | 66 | | request a waiver from the requirements under para-7 |
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67 | 67 | | graph (1) in order to expand sourcing to members 8 |
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68 | 68 | | of the national technical industrial base (as that 9 |
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69 | 69 | | term is defined in section 4801 of title 10, United 10 |
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70 | 70 | | States Code). Any such waiver shall be subject to 11 |
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71 | 71 | | the approval of the Director of the Made in America 12 |
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72 | 72 | | Office and may only be requested if it is determined 13 |
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73 | 73 | | that any of the following apply: 14 |
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74 | 74 | | (A) Application of the limitation would in-15 |
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75 | 75 | | crease the cost of the overall acquisition by 16 |
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76 | 76 | | more than 25 percent or cause unreasonable 17 |
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77 | 77 | | delays to be incurred. 18 |
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78 | 78 | | (B) Satisfactory quality items manufac-19 |
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79 | 79 | | tured by a domestic entity are not available or 20 |
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80 | 80 | | domestic production of such items cannot be 21 |
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81 | 81 | | initiated without significantly delaying the 22 |
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82 | 82 | | project for which the item is to be acquired. 23 |
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83 | 83 | | (C) It is inconsistent with the public inter-24 |
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84 | 84 | | est. 25 |
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86 | 86 | | kjohnson on DSK79L0C42PROD with BILLS 4 |
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87 | 87 | | •S 2487 IS |
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88 | 88 | | (5) RULEMAKING.—Not later than 180 days 1 |
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89 | 89 | | after the date of the enactment of this Act, the Sec-2 |
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90 | 90 | | retary of Defense, in concurrence with the Director 3 |
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91 | 91 | | of the Made in America Office, shall issue rules to 4 |
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92 | 92 | | determine the treatment of the lowest price offered 5 |
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93 | 93 | | for a foreign end product for which 55 percent or 6 |
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94 | 94 | | more of the component articles, materials, or sup-7 |
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95 | 95 | | plies of such foreign end product are manufactured 8 |
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96 | 96 | | substantially all from articles, materials, or supplies 9 |
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97 | 97 | | mined, produced, or manufactured in the United 10 |
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98 | 98 | | States if— 11 |
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99 | 99 | | (A) the application of paragraph (1) re-12 |
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100 | 100 | | sults in an unreasonable cost; or 13 |
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101 | 101 | | (B) no offers are submitted to supply man-14 |
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102 | 102 | | ufactured articles, materials, or supplies manu-15 |
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103 | 103 | | factured substantially all from articles, mate-16 |
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104 | 104 | | rials, or supplies mined, produced, or manufac-17 |
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105 | 105 | | tured in the United States. 18 |
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106 | 106 | | (6) A |
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107 | 107 | | PPLICABILITY.—The requirements of this 19 |
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108 | 108 | | subsection shall apply to contracts entered into on or 20 |
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109 | 109 | | after January 1, 2026. 21 |
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110 | 110 | | (b) R |
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111 | 111 | | EPORTING ONCOUNTRY OFORIGINMANUFAC-22 |
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112 | 112 | | TURING.—Not later than one year after the date of the 23 |
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113 | 113 | | enactment of this Act, and annually thereafter, the Sec-24 |
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114 | 114 | | retary of Defense shall submit to Congress a report on 25 |
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116 | 116 | | kjohnson on DSK79L0C42PROD with BILLS 5 |
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117 | 117 | | •S 2487 IS |
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118 | 118 | | country of origin tracking and reporting as it relates to 1 |
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119 | 119 | | manufactured content procured as part of Navy ship-2 |
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120 | 120 | | building programs, including through primary contracts 3 |
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121 | 121 | | and subcontracts at the second and third tiers. The report 4 |
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122 | 122 | | shall describe measures taken to ensure that the country 5 |
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123 | 123 | | of origin information pertaining to such content is re-6 |
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124 | 124 | | ported accurately in terms of the location of manufacture 7 |
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125 | 125 | | and not determined by the location of sale. 8 |
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126 | 126 | | Æ |
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128 | 128 | | kjohnson on DSK79L0C42PROD with BILLS |
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